diff --git a/packages/app-desktop/gui/NoteEditor/NoteBody/TinyMCE/TinyMCE.tsx b/packages/app-desktop/gui/NoteEditor/NoteBody/TinyMCE/TinyMCE.tsx
index 9ee7244a7..c46dc6573 100644
--- a/packages/app-desktop/gui/NoteEditor/NoteBody/TinyMCE/TinyMCE.tsx
+++ b/packages/app-desktop/gui/NoteEditor/NoteBody/TinyMCE/TinyMCE.tsx
@@ -30,6 +30,7 @@ import shouldPasteResources from './utils/shouldPasteResources';
 import lightTheme from '@joplin/lib/themes/light';
 import { Options as NoteStyleOptions } from '@joplin/renderer/noteStyle';
 import markupRenderOptions from '../../utils/markupRenderOptions';
+import { DropHandler } from '../../utils/useDropHandler';
 const md5 = require('md5');
 const { clipboard } = require('electron');
 const supportedLocales = require('./supportedLocales');
@@ -93,7 +94,7 @@ const TinyMCE = (props: NoteBodyEditorProps, ref: any) => {
 	const props_onMessage = useRef(null);
 	props_onMessage.current = props.onMessage;
 
-	const props_onDrop = useRef(null);
+	const props_onDrop = useRef<DropHandler|null>(null);
 	props_onDrop.current = props.onDrop;
 
 	const markupToHtml = useRef(null);
@@ -706,16 +707,21 @@ const TinyMCE = (props: NoteBodyEditorProps, ref: any) => {
 						if (editable) openEditDialog(editor, markupToHtml, dispatchDidUpdate, editable);
 					});
 
-					// This is triggered when an external file is dropped on the editor
 					editor.on('drop', (event) => {
-						// Prevent the message "Dropped file type is not
-						// supported" to show up. It was added in a recent
-						// TinyMCE version and doesn't apply since we do support
+						// Prevent the message "Dropped file type is not supported" from showing up.
+						// It was added in TinyMCE 5.4 and doesn't apply since we do support
 						// the file type.
-						// https://stackoverflow.com/questions/64782955/tinymce-inline-drag-and-drop-image-upload-not-working
-						event.preventDefault();
-
-						props_onDrop.current(event);
+						//
+						// See https://stackoverflow.com/questions/64782955/tinymce-inline-drag-and-drop-image-upload-not-working
+						//
+						// The other suggested solution, setting block_unsupported_drop to false,
+						// causes all dropped files to be placed at the top of the document.
+						//
+						// Because .preventDefault cancels TinyMCE's own drop handler, we only
+						// call .preventDefault if Joplin handled the event:
+						if (props_onDrop.current(event)) {
+							event.preventDefault();
+						}
 					});
 
 					editor.on('ObjectResized', (event) => {
diff --git a/packages/app-desktop/gui/NoteEditor/utils/types.ts b/packages/app-desktop/gui/NoteEditor/utils/types.ts
index 3ac9422a8..f15181e08 100644
--- a/packages/app-desktop/gui/NoteEditor/utils/types.ts
+++ b/packages/app-desktop/gui/NoteEditor/utils/types.ts
@@ -5,6 +5,7 @@ import { MarkupLanguage } from '@joplin/renderer';
 import { RenderResult, RenderResultPluginAsset } from '@joplin/renderer/types';
 import { Dispatch } from 'redux';
 import { ProcessResultsRow } from '@joplin/lib/services/search/SearchEngine';
+import { DropHandler } from './useDropHandler';
 
 export interface AllAssetsOptions {
 	contentMaxWidthTarget?: string;
@@ -113,7 +114,7 @@ export interface NoteBodyEditorProps {
 	resourceDirectory: string;
 	locale: string;
 	// eslint-disable-next-line @typescript-eslint/ban-types -- Old code before rule was applied
-	onDrop: Function;
+	onDrop: DropHandler;
 	noteToolbarButtonInfos: ToolbarButtonInfo[];
 	plugins: PluginStates;
 	fontSize: number;
diff --git a/packages/app-desktop/gui/NoteEditor/utils/useDropHandler.ts b/packages/app-desktop/gui/NoteEditor/utils/useDropHandler.ts
index 066969bfc..c76f19e62 100644
--- a/packages/app-desktop/gui/NoteEditor/utils/useDropHandler.ts
+++ b/packages/app-desktop/gui/NoteEditor/utils/useDropHandler.ts
@@ -1,36 +1,44 @@
 import { useCallback } from 'react';
 import Note from '@joplin/lib/models/Note';
+import { DragEvent as ReactDragEvent } from 'react';
 
 interface HookDependencies {
 	editorRef: any;
 }
 
-export default function useDropHandler(dependencies: HookDependencies) {
+// Returns true if Joplin handled the event
+export type DropHandler = (event: DragEvent|ReactDragEvent)=> boolean;
+
+export default function useDropHandler(dependencies: HookDependencies): DropHandler {
 	const { editorRef } = dependencies;
 
-	return useCallback(async (event: any) => {
-		if (!event.dataTransfer) return;
+	return useCallback((event: DragEvent|ReactDragEvent) => {
+		if (!event.dataTransfer) return false;
 
 		const dt = event.dataTransfer;
 		const createFileURL = event.altKey;
 
 		if (dt.types.indexOf('text/x-jop-note-ids') >= 0) {
 			const noteIds = JSON.parse(dt.getData('text/x-jop-note-ids'));
-			const noteMarkdownTags = [];
-			for (let i = 0; i < noteIds.length; i++) {
-				const note = await Note.load(noteIds[i]);
-				noteMarkdownTags.push(Note.markdownTag(note));
-			}
 
-			editorRef.current.execCommand({
-				name: 'dropItems',
-				value: {
-					type: 'notes',
-					markdownTags: noteMarkdownTags,
-				},
-			});
+			const dropNotes = async () => {
+				const noteMarkdownTags = [];
+				for (let i = 0; i < noteIds.length; i++) {
+					const note = await Note.load(noteIds[i]);
+					noteMarkdownTags.push(Note.markdownTag(note));
+				}
 
-			return;
+				editorRef.current.execCommand({
+					name: 'dropItems',
+					value: {
+						type: 'notes',
+						markdownTags: noteMarkdownTags,
+					},
+				});
+			};
+			void dropNotes();
+
+			return true;
 		}
 
 		const files = dt.files;
@@ -50,7 +58,10 @@ export default function useDropHandler(dependencies: HookDependencies) {
 					createFileURL: createFileURL,
 				},
 			});
+			return true;
 		}
+
+		return false;
 		// eslint-disable-next-line @seiyab/react-hooks/exhaustive-deps -- Old code before rule was applied
 	}, []);
 }